Business Daily from THE HINDU group of publications
Monday, Aug 13, 2007
ePaper
Business Daily from THE HINDU group of publications Monday, Aug 13, 2007 ePaper |
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Mentor
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Taxation Columns - For the Asking Why burden employers with tax calc of employees?
Why is an employer burdened with calculating the actual tax liability of his employee and deducting tax accordingly whereas assessment is the job of the income-tax department? Incidentally, for all payments, only an ad-hoc rate has been specified. Why this double standard? Krishnan, email
The reason is the employer is in possession of all the details relating to his employee and he knows which allowance is exempt, which perquisite is taxable, etc. There is absolutely no uncertainty which is the case with regard to, say, payments to contractors. But I do agree it is a burden which employers are supposed to discharge as a labour of love. The enormity of the burden can be gauged by the fact that big companies spend several crores of rupees on maintaining a full-fledged department for this purpose. High seas sale
What is high seas sale? Lalita, email
High sea sales are common when the actual user is also not the importer to start with. He looks for an importer and requests him to sell the consignment when it is on its way before it winds up at the Indian shores. This way the actual user steps into the shoes of the importer. Had he waited for the actual arrival of goods in India, it would have attracted sales tax as well. Through the expedient of high sea sales, he succeeds in avoiding sales tax and gets away with payment of Customs duty alone, which in any case would be passed on to him by the importer. He thus succeeds in ducking the double-taxation, as it were. Filing of returns
Are all PAN holders required to file return? My income is below the taxable limit? Anonymous
You are not required to file return unless your gross total income (GTI) is more than the tax-free limit applicable to you according as you are a senior citizen or a non-senior citizen or a non-senior woman. Yes, you have to file your return if you have losses to be carried forward. Firms and companies have to mandatorily file returns. Inter-bank deposit
What is inter-bank term money? Shyam Sunder Gupta, Ludhiana
It is a short-term deposit parked by one bank with another so as to enable the latter to meet its liquidity requirements stipulated by the RBI. The lending bank obviously would be comfortably placed in this regard so as to enjoy a surplus that can be parked with another bank to enable the latter to tide over its difficulties. S. MURLIDHARAN
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